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10,000

A. Construct a table showing Berra's marginal sales per day in each state.

B. If administrative duties limit Berra to only 10 selling days per month, how should she spend them?

C. Calculate Berra's maximum monthly commission income.

P2.5 Marginal Analysis: Tables. Climate Control Devices, Inc., estimates that sales of defective thermostats cost the firm an average of $25 each for replacement or repair. An independent engineering consultant has recommended hiring quality control inspectors so that defective thermostats can be identified and corrected before shipping. The following schedule shows the expected relation between the number of quality control inspectors and the thermostat failure rate, defined in terms of the percentage of total shipments that prove to be defective.

Number of Quality Control Inspectors Thermostat Failure Rate (percent)
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